The European Commission is taking action over the direct award by an Italian municipality of a waste management service contract to a publicly owned limited liability company in which the municipality has a minority shareholding. The Commission takes the view that the exemption applicable to the award of services "in-house" does not apply in this case as the municipality's interest in the company is insufficient to give it control similar to that which it exercises over its own departments, and the company concerned carries out a significant part of its activities with parties other than the entities which control it.